Since the LLC will be a single member should I choose to be disregarded as an individual entity or register my LLC as a corp or S-corp? My main goal is to pay the absolute minimum taxes and to have the maximum deductions.
answered on Jul 5, 2018
It somewhat depends. If you create an LLC that is a disregarded LLC with you as the single member, then you will have created a sole proprietorship. Whatever the net income is from the LLC you will be required to pay 15.3% in self-employment taxes above whatever your normal income tax rate is.... View More 
answered on Jul 3, 2018
Qualified medical expenses that are part of the deduction will remain the same under the new law. For 2018, you will be able to deduct expenses exceeding 7.5% of your AGI. Therefore, if your AGI is $100,000 you will be able to deduct all medical expenses that exceed $7,500. Anything under that... View More
answered on Jul 3, 2018
The deduction is limited to $10,000 regardless of married or single status
answered on Jun 29, 2018
He himself would be the proximate cause of his injuries and could not recover from you individually for his injuries sustained in an accident while driving your car. He could, however, still recover from the insurance company of the driver at fault or from your insurance company if they have... View More
I owe the IRS $6500 and have the check ready to go. Will they reject my hardcopy without him signing as tax preparer? Is this legal for him to do? I have paid in full for my personal taxes, which he refuses to efile until I finalize pmt for my corporate taxes.
answered on Jun 22, 2018
You can sign the return and send it in but you are still legally obligated to pay him for the services he provided.
I am retiring soon, and plan to roll my government 401K-type plan into a self-directed checkbook IRA, with me as administrator and possibly also custodian.. The principal investment will be flipping foreclosure homes. I plan to buy the houses jointly with my IRA, to maximize the funds I have... View More
answered on Jun 16, 2018
You cannot live in the house. Anything that you use IRA money to buy cannot be for the benefit of the IRA member. You can manage the LLC that you set up, but you cannot work on the house yourself nor live in it during renovation. That is a prohibited transaction and will cause the IRS to... View More
I am 70 and my wife is 72 and we file jointly.
answered on Jun 14, 2018
If you distribute from your IRA to pay medical bills, the distribution would be considered taxable income and be subject to income taxes at your normal income tax rate. You don't have to pay a 10% penalty for the early withdrawal once you have reached the age of 59 1/2. However, even if you... View More
answered on Jun 13, 2018
The IRS will place liens on all property owned by the tax debtor. Therefore, if your father does not owe the IRS money and has other property, that other property will not be at risk of having a lien filed on it, nor will they be able to levy or seize that property. The vehicle in which your name... View More
answered on Jun 9, 2018
If she is simply gifting the proceeds to the children they would not have to pay tax on the proceeds. If her name was on the deed and she paid the taxes associated with the sale, she can distribute when she feels. She may however have to file another tax return if the gifted amount is more than... View More
Whether cash out, convert to IRA, Roth IRA or C-company?
answered on Jun 9, 2018
It just depends on what type of work you are doing now. For instance, if you are working for another company, you might roll it into their 401k plan. If you are in retirement, the IRA might be a good option because you are just waiting on distributions. If you are running your own business, you... View More
I want to know if there are any taxes I will owe for receiving my inheritance (money) from another country (Norway) even though I collect social security.
answered on Jun 9, 2018
There should be no taxes associated with receiving an inheritance. You would be able to take the property at the value you receive it. The only time you would owe taxes aon an inheritance is if the property you receive through the inheritance is income producing property. Usually, the estate... View More
If I own an entertainment corporation can I purchase property in my corporations name. I want to purchase 2 commercial properties. Both will be a storage/warehouse for equipment but in separate states because I provide entertainment services in different states and hate shipping equipment back... View More
answered on Jun 9, 2018
Entertainment inc can by property, however it is not a great entity to hold real property. C corporations are horrible vehicles for holding real estate because you don’t get the benefits of capital assets in a C Corporation. I would put the properties in LLCs owned 100% by yourself or a holding... View More
A realtor told me my house was worthless -said buyer gave me 215,000. Colo Real Estate Comm and Denver DA figured out that invisible buyer bought my house for 305,000 and then turned and sold it for 1,100,000. To avoid going to trial, I was given "criminal restitution" of $75,000. Do I... View More
answered on Jun 8, 2018
Yes, you would have to pay taxes on the restitution you received. Any accession to wealth is taxable unless that judgment is in the form of physical pain and suffering.
Assuming I had 255k of taxable income, but they cleaned me out is there a possible law suit
answered on Jun 6, 2018
The IRS has the right to file what is called an SFR - substitute for return on your behalf. If they see a substantial amount of income that was reported to them from third-parties, they will likely conduct an audit of your account and force the preparation of a tax return. Once there is an... View More
a deduction now, and smaller deductions over time. Is this the best option?
answered on Jun 6, 2018
I am not sure what deductions you would be allowed with an inherited IRA. However, you can roll the 401K into an inherited 401K that will allow you to stretch the distributions from the plan based on your life expectancy. Sometimes, the inherited 401k requires that the whole amount is distributed... View More
an employee of my LLC and pay her as a site manager since it is a 4 bedroom unit and i will have at least 2 others paying rent?
answered on Jun 5, 2018
It seems that if you paid her (a deduction) so that she could pay you rent (income), there would be some sort of wash there with the income offsetting the deductions. The way this might benefit you, is this could then be treated as a rental and you would be able to depreciate the property.... View More
An independent contractor has a corporation in Florida. He is the only employee under his own corporation. He is planning on managing several cell phone stores for someone else in Arkansas. He is paid via contractor check at the end of the year. Will he need to file for the Arkansas Certificate of... View More
answered on Jun 5, 2018
I am not an attorney in Arkansas, however, after looking at the statute, I do not believe he would fall under any of the exceptions in the law. The reason I say this is he would meet an exception if he were paying an independent contractor to do the work for him in Arkansas. However, if he is... View More
Does US tax laws / Corporate law mention a specific minimum gross margin that should be maintained by a US company while trading with its related party abroad?
Or,does it ask to ensure that the price at which it sells to its related party abroad is not lesser than the price at which it... View More
answered on Jun 2, 2018
when you sell a piece of property to a related party cheaper, the IRS may make the property ordinary again to the u.s. company/individual. Also, you cannot sell the property to a related property and claim a loss on the sale.
answered on Jun 1, 2018
Whenever you have an accession to wealth for services that were provided to another individual, you should report that income on your tax return. Because this job would be considered self-employment, you will be responsible for the income taxes associated with the net proceeds of the job as well... View More
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
